5 Best Business Industries For e-Residency Companies
It seems that the now too familiar sci-fi movie of 2020 continues and Europe and rest of the Western world continues to be in some form of lockdown.
It’s not too bad YET in Estonia, but in some countries you can’t even go outside without a permit.
That’s crazy. And I think most people agree.
At the same time, China is fully back to business. Together with a few other countries. Good for them.
All this stress and anxiety means that many businesses are suffering. There’s nothing happening. No business, no work, no income.
And this naturally leads to a difficult situation for many families.
Eventually, everything will turn around. Meanwhile, I think many of us have learned an important lesson.
And the lesson is that there’s no way to ignore the digital world. Online businesses are still doing fine. Even better than before. And while it may feel like a temporary situation, it’s not. If you don’t have skills that are relevant in the digital world, it’s going to be very difficult for you to keep your standard of living in the next decade.
The good news is that many skills can be successfully transferred to a digital world. So it’s definitely not “too late” for anything. It’s easier than ever to start an online business.
And to make things simpler, I will list out a couple of great niches where it’s wise to utilise e-Residency & starting an online business.
SaaS
SaaS stands for Software-as-a-Service. SaaS businesses can be extremely profitable. It’s a type of business which is getting more and more attention from the VCs, and it’s even seen as a separate asset class by some of the savvier investors. Meaning, with SaaS business, you can have an asset which produces a serious cashflow. Think of companies like Dropbox, Slack, Notion, Pipedrive (the latest Estonian startup in a unicorn club). There are many micro-SaaS companies now, who have built very simple plugins on top of existing products like Gmail, Chrome or Slack marketplaces. It’s an exciting field. And e-Residency is a great match for SaaS companies.
eCommerce
If you’ve been living under a rock, then eCommerce is booming. Many e-Residency companies are in an eCommerce industry. Whether you’re selling on Amazon, Shopify, or any other platform. E-residency is a great option for eCommerce companies. Many German Amazon FBA sellers are using e-Residency because managing Estonian company is a lot less bureaucratic and cost-effective compared to managing a German company. If you’re selling to the US market only, then it’s likely wiser to use a Delaware company or any other US entity, as your business is US-centric. But if you’re selling mostly in Europe, then Estonian company is definitely a good choice.
Consultants & Coaches
One group of clients who have always appreciated the e-Residency are companies providing online consulting and coaching services. As the service is provided online, and there’s no need for physical office or meetings, then e-Residency is an ideal solution for consultants. We’ve got many Ukrainian and Russian IT-consultants providing services for their European clients through e-Residency companies. It’s a great way to be legally established in Europe and makes invoicing clients a lot simpler.
Software Developers
Similarly to the previous point, software developers, graphic designers, and similar contributors to the gig economy are a great fit for e-Residency. You’ve got more legitimacy as a company in the European Union, and you can charge higher prices than you would otherwise charge as a freelancer. But I guess you’re getting the pattern – any service provider online is suitable to be done via Estonian e-Residency company.
FinTech & Crypto Businesses
The last category in this list is for FinTechs and crypto businesses. Estonia is seen as one of the most innovative countries in the world, and together with a sound regulatory environment, it’s a great place to start your FinTech business through e-Residency. Most of the FinTechs require a license of some kind (which we can help you with), but that’s applicable for any jurisdiction. Interestingly, Estonian founders have also established some of the best-known FinTechs in Europe, like TransferWise and Monese.
As for crypto businesses, Estonia has been one of the hot spots for crypto companies since the regulators introduced a specific crypto license in 2017. Fast forward three years and most of the EU nations still do not have any regulations related to cryptocurrencies. And this is important, as you need to have the certainty that you’re not doing something that isn’t allowed. Moreover, many biggest crypto businesses in the world also hold Estonian licenses. Lately, we’ve published some updates about the regulatory changes to the crypto licenses.
Conclusion
To conclude, e-Residency is suitable for all services which don’t require a physical presence. Sometimes, it is smarter to register a company in a specific jurisdiction where all your operations and clients are, but this has to be assessed on a case by case basis. For all other cases, we’re certain it’s a great choice for you. Due to cost-efficiency, taxation, and convenience. That said, we’re always ready to consult you on making the best decision before starting.